IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 15TH DAY OF MARCH, 2019 BEFORE THE HON'BLE MRS. JUSTICE S.SUJATHA COMPANY APPLICATION No.13/2019 IN COMPANY PETITION No.9/2010 BETWEEN:
J.M.FINANCIAL ASSET RECONSTRUCTION COMPANY LTD., (FORMERLY JM FINANCIAL ASSET RECONSTRUCTION COMPANY PVT. LTD.,) 7TH FLOOR, CNERGY APPASAHEB MARATHE MARG, PRABHADEVI, MUMBAI – 400025 … APPLICANT (BY SRI DEEPAK, ADV.) AND:
THE OFFICIAL LIQUIDATOR OF M/s SHAKAMBARI FASHIONS PVT. LTD. (IN LIQN.) ATTACHED TO HIGH COURT OF KARNATAKA, 12TH FLOOR, RAHEJA TOWERS, NEAR KIDS CAMP, M.G.ROAD, BENGALURU – 560001 …RESPONDENT (BY SMT.ANUPAMA HEBBAR, ADV.) THIS COMPANY APPLICATION IS FILED UNDER RULE 6 AND 9 OF THE COMPANIES (COURT) RULES, 1959 PRAYING TO DIRECT THE OFFICIAL LIQUIDATOR TO PAY A SUM OF Rs.12,75,34,500/- BEING THE PROPORTIONATE SHARE OF THE APPLICANT TOWARDS THE VALUE OF THE LAND, IN FURTHERANCE TO CONFIRMATION OF THE SALE IN FAVOUR OF THE HIGHEST BIDDER.
THIS COMPANY APPLICATION IS COMING ON FOR ORDERS THIS DAY, THE COURT MADE THE FOLLOWING:
O R D E R This Company Application is filed by the Company [in liquidation] seeking a direction to the official liquidator to pay a sum of Rs.12,75,34,500/- [Rupees Twelve Crores Seventy Five Lakhs Thirty Four Thousand and Five Hundred only] being the proportionate share of the applicant towards the value of the land, in furtherance to confirmation of the sale in favour of the Highest Bidder.
2. It is contended by the applicant that pursuant to the auction sale held in compliance with the order of this Court passed in C.A.No.343/2017 in Company Petition No.9/2010 dated 17.02.2018, the auction was conducted and the bids were opened and the bid of M/s.R.R.Engineering Company was the highest offer at Rs.19,01,00,000/- [Rupees Nineteen Crores One Lakh only]. An opportunity was given to the parties to match the highest bid and inter se bidding took place and on such bidding, it emerged that M/s.R.R.Engineering Company quoted the highest bid of Rs.20,25,00,000/- [Rupees Twenty Crores and Twenty Five Lakhs only] in the open auction and thus emerged as the highest bidder.
3. However, the successful bidder could not make the payment within the stipulated period and sought time before this Court to extend further time for a period 15 days. This Hon’ble Court granted time till 31.01.2019 for making payments. The said bidder has now deposited the entire sum and Company Application No.4/2019 was filed for confirmation of the sale. This Court has confirmed the sale by an order dated 08.02.2019. It is submitted by the applicant that since the land of the schedule property is owned by the guarantors and is not owned by the company and the building thereon only belongs to the company. Hence, the official liquidator is entitled only to the proceedings pertaining to the building and not the land.
4. The valuation report obtained for the property shows that the entire property is valued at 19,35,79,000/- [Rupees Nineteen Crores Thirty Five Lakhs and Seventy Nine Thousand only] and the value of the land alone would be Rs.12,19,12,000/- [Rupees Twelve Crores Nineteen Lakhs and Twelve Thousand only]. Since the bid received is more that of the value, the applicant is entitled to proportionate increase in the value. Hence, the value of the land after applying the proportionate increase would be Rs.12,75,34,500/- [Rupees Twelve Crores Seventy Five Lakhs Thirty Four Thousand and Five Hundred only] which is required to make over to the applicant.
5. The Deputy Official Liquidator has filed reply/objections admitting the highest bid value and the proportionate share of the applicant pertaining to the value of the land in terms of the valuation report. However, it is contended that as per Rule 291 of the Companies Court Rules, 1959, the official liquidator has to deduct Central Government Commission on the sale, which as per the ratio would comes to be Rs.19,13,854/- [Rupees Nineteen Lakhs Thirteen Thousand Eight Hundred and Fifty Four only]. Hence, the payable amount after the aforesaid mentioned rates would be Rs.12,56,16,393/- [Rupees Twelve Crores Fifty Six Lakhs Sixteen Thousand Three Hundred and Ninety Three only] and the same may be disbursed to the applicant.
6. Learned counsel appearing for the applicant has no objections to deduct sum of Rs.19,13,854/- [Rupees Nineteen Lakhs Thirteen Thousand Eight Hundred and Fifty Four only] towards Central Government Commission on the same, as submitted by the Deputy Official Liquidator.
7. In view of the aforesaid, this Court deems it appropriate to direct the official liquidator to disburse the amount of Rs.12,56,16,393/- [Rupees Twelve Crores Fifty Six Lakhs Sixteen Thousand Three Hundred and Ninety Three only] to the applicant in an expedite manner.
In the result, the company application stands disposed of in terms of the above.
Sd/- JUDGE NC.